Kerala Financial Corporation (KFC), the state-backed financial institution, has recorded a net profit of ₹98.16 crore for the financial year 2024–25. That’s a 32.56% jump from the previous year, marking the highest-ever profit in its history.
Backed by continued government support and a sharper focus on MSMEs and startups, KFC has pushed its total loan portfolio to ₹8,011.99 crore—crossing the ₹8,000 crore mark for the first time. Its net worth also improved, reaching ₹1,328.83 crore.
A capital infusion of ₹920 crore by the Kerala Government has helped KFC offer loans at lower interest rates. According to State Finance Minister KN Balagopal, the loans now start from as low as 5%, particularly benefiting the MSME sector.
“KFC’s performance reflects the broader momentum in Kerala’s industrial development,” the minister noted while commenting on the annual results.
With a ₹200 crore addition to share capital, KFC’s Capital Adequacy Ratio (CRAR) has risen to 28.26%—far above the 15% minimum required for NBFCs by the RBI. Meanwhile, asset quality has shown some improvement. Gross NPAs dropped from 2.88% to 2.67%, and net NPAs dipped to 0.61% from 0.68% the previous year.
Sanctions totalling ₹4,002.57 crore were given out across MSMEs, startups, and other sectors. Disbursements stood at ₹3,918.40 crore, while recoveries were slightly higher at ₹3,980.76 crore.
KFC Managing Director Sriram Venkitaraman said the Corporation is eyeing a ₹10,000 crore loan book by the end of the current financial year. The expansion will focus not only on MSMEs but also tap into tourism and other emerging sectors.
“We’re planning a full digital transformation—modernising infrastructure, digitising offices, and skilling up the workforce—to enhance operational efficiency and improve service delivery,” he added.
The low net NPA ratio—at just 0.61%—points to relatively prudent lending practices. According to Venkitaraman, this is one of the key reasons KFC has been able to maintain steady growth and support Kerala’s entrepreneurial ecosystem.
“We’re committed to sustainable economic development by backing MSMEs and startups that generate jobs and drive innovation,” he said.
Under the Chief Minister’s Entrepreneurship Development Programme (CMEDP), KFC has supported 3,028 MSMEs so far. These units have collectively received ₹1,030.89 crore in loans at 5% interest, and reportedly created around 81,634 direct and indirect jobs.
In addition, the Startup Kerala Scheme has extended collateral-free loans worth ₹95.20 crore to 72 startups.
